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FirstFT: Hawkish EU states push for harsher sanctions in opposition to Russia


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Good morning. Hawkish EU members pushing for harsher measures in opposition to Russia, together with ejecting extra banks from the Swift messaging community and banning diamond imports, because the bloc drafts a spherical of sanctions over the Ukraine battle.

The international locations demanding the measures — which might additionally goal luxurious items and Russia’s IT, cyber safety and software program industries — embody Poland and the Baltic states. The transfer got here in response to Vladimir Putin’s army escalation this week.

However officers mentioned it could be troublesome to seek out consensus among the many 27 member states. Hungary has mentioned it doesn’t need new sanctions.

The European Fee’s objective is to push by way of a hard-fought G7 settlement to cap the worth of Russian oil following months of US-led negotiations.

A possible new spherical of sanctions, which might be the eighth, is anticipated to be formally tabled after conferences between fee officers and member state representatives start as we speak.

  • On the UN: Russia’s international minister Sergei Lavrov defended Moscow’s invasion yesterday as he traded barbs with western powers on the UN Safety Council.

  • And on Russian streets: The Monetary Instances spoke with individuals who had been referred to as up to the Russian military, feared they quickly could be or had shut kin going through conscription. “My son is meant to go to battle in opposition to my nephew,” one mentioned.

Do you help extra hard-hitting measures in opposition to Russia? Why? Share your ideas at [email protected] and I’d characteristic them in an upcoming version of the e-newsletter. Thanks for studying FirstFT Europe/Africa — Jennifer

1. Kwasi Kwarteng’s plan to kick-start UK financial progress The chancellor will try and revive Britain’s economic system as we speak with a 30-point progress bundle to show “the vicious cycle of stagnation right into a virtuous cycle of progress”. The mini-Price range will come a day after the Financial institution of England raised rates of interest by 0.5 proportion factors, a extra average transfer than the US Federal Reserve.

Line chart of Bank rate (%) showing The BoE decided on a half-point rate rise

2. IEA boss: Vitality crunch dangers shattering EU unity Fatih Birol, the Worldwide Vitality Company’s government director, mentioned he feared “a wild west state of affairs” if European international locations restricted their very own commerce or stopped collaborating with neighbours over fears of gasoline shortages this winter.

  • In derivatives markets: European authorities have performed down their capability to intervene in derivatives markets to assist vitality corporations after privately admitting that value volatility was not as a result of “market malfunctioning”.

  • And in the bathroom: A significant German bathroom paper maker has gone bust, whereas others are reducing manufacturing, elevating costs or switching to different vitality sources.

3. Boeing to pay $200mn penalty over 737 Max The aerospace producer and its former chief government Dennis Muilenburg agreed to pay thousands and thousands of {dollars} to settle prices from the US Securities and Trade Fee of deceptive buyers about two lethal crashes of its 737 Max plane.

4. Considerations over UK plans to assessment ‘retained’ EU regulation Prime Minister Liz Truss’s drive to “revoke or reform” all EU legal guidelines nonetheless in impact within the UK after Brexit dangers a possible bonfire of staff’ rights and environmental regulation, labour unions and the Scottish authorities have warned.

5. Twelve die as Iran cracks down on protests Of the 12 folks killed, at the least 5 have been members of the safety forces, officers mentioned, after the loss of life of 22-year-old Mahsa Amini in police custody triggered the most important anti-regime protests since 2019. Even staunch supporters of the regime are questioning the necessity to implement Islamic gown code.

Did you retain up with the information this week? Take our quiz.

The times forward

Russian-occupied Ukraine referendums Voting in what Nato has decried as “sham referendums” on whether or not to affix Russia begins as we speak and runs by way of Tuesday within the Donetsk and Luhansk Folks’s Republics — dominated by Moscow-backed separatists since 2014 — in addition to Kherson and elements of Zaporizhzhia province.

Financial knowledge Composite buying managers’ indices of producing and companies in September are out for the eurozone, France, Germany, the UK and the US. August surveys pointed to a pointy slowdown in financial progress. The UK’s GfK client confidence survey can also be out, as are second-quarter gross home product figures for Spain. (FT, WSJ)

Labour celebration convention The UK opposition celebration begins its four-day annual convention on Sunday in Liverpool, the place anticipated matters embody staff’ strikes, the price of residing disaster and the federal government’s mini-Price range.

Italy common election Voters head to the polls on Sunday after one of many shortest campaigns within the nation’s historical past, arising from prime minister Mario Draghi’s resignation. Italians are anticipated to ship a decisive mandate to a rightwing coalition whose rivals have did not forge a united opposition.

On Monday, be part of our Tech & Politics Discussion board in partnership with ETNO to listen to trade CEOs, policymakers and buyers in Brussels map future insurance policies and rulemaking in EU digital markets. Register right here to affix the dialog in individual or on-line.

What else we’re studying

Why enterprise leaders shouldn’t develop into cult figures We’re fascinated by company management. However does that obsession come on the expense of company governance, guaranteeing checks on any particular person’s energy and completely different opinions across the boardroom desk? Adulated chief executives danger getting caught up in cash, fame and energy.

A montage of Mark Zuckerberg, Elon Musk and Jeff Bezos
Andrew Edgecliffe-Johnson: ‘Buildings are wanted that stop CEOs from believing the sycophants or staying too lengthy’ © FT montage/Dreamstime/AFP/Getty Photos

How a lot cash will make you content? All of us have fantasies about how a lot we would wish to make ourselves glad — but it surely doesn’t need to be a fortune. The true drawback is that being a multibillionaire would change your relationship with each different human being. Tim Harford considers how a lot anybody actually wants.

Why commerce couldn’t purchase peace In current a long time, the near-consensus of policymakers and enterprise leaders has been that peace was the pure situation of the developed world and that globalisation was immune from geopolitical danger. However because the battle in Ukraine and tensions over Taiwan have proven, John Plender writes, they have been unsuitable.

Economics might take us to web zero by itself For the most effective a part of the previous 200 years, one rule held the world over: if a rustic’s financial exercise expanded, so did its carbon emissions. However beginning within the Nineteen Eighties with the appearance of nuclear energy, international locations may more and more reduce emissions whereas rising GDP, notes John Burn-Murdoch.

The 5 issues the tech bubble acquired proper Because the tech entrepreneur Paul Graham wrote within the aftermath of the primary dotcom crash, inventory market buyers have been proper in regards to the course of journey even when they have been unsuitable in regards to the pace of the journey. John Thornhill revisits that concept as buyers survey the wreckage of particular objective acquisition corporations.

Books

The six titles up for FT’s 2022 Enterprise Ebook of the 12 months Award sort out “among the hardest and most essential points going through international capitalism”, mentioned Roula Khalaf, FT editor and chair of judges. See which titles made the shortlist.

Disrupted Instances — Documenting the adjustments in enterprise and the economic system between Covid and battle. Enroll right here

Asset AdministrationEnroll right here for the within story of the movers and shakers behind a multitrillion-dollar trade

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